“The Stamp Duty Land Tax (SDLT) changes were confirmed as expected with a slight surprise regarding that it will apply to limited companies purchasing over 15 properties. Some were hoping the changes would be delayed, but that wasn’t to be.”

Mahoney explains further tax changes: “The personal income tax threshold was increased, and the higher tax rate threshold increased. This is good news for smaller landlords who earn limited income or were borderline with the higher threshold, and also for those able to split income with a lower earning partner.

“It gives some breathing space and further ability to avoid the mortgage interest deductibility changes from the summer Budget, which will now only affect those earning more than £45,000 – up from £42,000.”

Additionally, Capital Gains Tax (CGT) changes were announced.

Mahoney gives details: “CGT was reduced by 8% for all levels of income, but unfortunately, residential property has been excluded from this change, which potentially makes commercial property a more attractive option for some, but in reality, the status quo has been maintained for residential landlords.

“Commercial property SDLT has also been increased with a change to a similar threshold system as residential property.”

So what will affect you?

“Overall, not much has changed for residential landlords, aside from a slight increase in the tax-free threshold and higher tax threshold, which is positive. We therefore view the Budget as reasonably positive, given that the negatives were already known.”

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